HK Exchange Chief Trails Global Peers in Compensation

The head of Hong Kong Exchanges and Clearing, Charles Li, received an eye-popping pay raise last year, but he may be forgiven for a moment of pique: the man who led the bold takeover of London Metal Exchange two years ago still earns considerably less than his global peers.

Charles Li, the HK$38.3 million man.

Mr. Li’s compensation package last year totaled HK$38.3 million (US$4.9 million)–up 55% from the previous year, according to a company report published late Wednesday. The same day HKEx reported an 11% rise in 2013 profits to HK$4.55 billion ($586 million), buoyed in part by a flurry of new listings during the fourth quarter and the LME purchase.

Still, Mr. Li, who runs the world’s third-largest exchange by market capitalization of its own shares, trails his U.S. peers in the remuneration stakes.

According to an analysis published by Wall Street Journal sister publication Financial News in April last year, Nasdaq OMX chief Bob Greifeld received $8.9 million in total compensation in 2012, while NYSE Euronext Chief Executive Duncan Niederauer received $8.85 million. Jeff Sprecher, chief executive of IntercontinentalExchange, which acquired NYSE Euronext last year, took home $7.4 million in 2012.

Xavier Rolet, chief executive of the London Stock Exchange Group, was handed £2.4 million (US$4 million) in salary, bonus and other benefits, as well as performance-related shares valued at £1.35 million, for the year ending in March 2012.

Mr. Li’s compensation included HK$8.7 million in base salary, a HK$9.4 million cash bonus, HK$18.9 million in share awards, and HK$1.3 million in retirement and other benefits, according to the report. His total compensation in 2012 was HK$24.6 million.

Most of the overall increase from the previous year came in the form of performance-related share awards, the value of which jumped more than 100% from HK$9.2 million in 2012. Li was awarded HK$8.65 million for the purchase of shares “as a long-term incentive” in December. His cash bonus also rose 42% from HK$6.6 million in 2012.

The HKEx declined to comment.

Write to Michelle Price at mprice@efinancialnews.com and follow her on Twitter at @michelleprice36